Hello Anthony, hello! We're talking today about first-time penalty abatement. That's right. One thing we already know is that penalties and interest can accrue very quickly on a tax debt. A question we get from a lot of clients is, can we have the IRS forgive these penalties and interest? This is something that people need to know. First-time penalty abatement is easier than they think, but not all penalty abatement is easy. However, there is a first-time penalty abatement that pretty much everyone is going to qualify for. Usually, something... usually. So, that's what we're going to be talking about today - how the different penalty abatements work and how there's probably one for most people. And really, for most people who have fallen behind on their taxes, this is really for them. And the thing to know is, the IRS isn't going to tell you this. No, they'll take those penalties and say, "Hey, thanks for the money you probably didn't have to pay us." So, what we want to do is help people not pay more than they need to. Exactly. Now, the first thing we'll quickly touch on is reasonable cause. Right, okay, abatement of penalties is more likely than abatement of interest. That's right. Okay, so the first choice is reasonable cause. The IRS threshold for what constitutes reasonable cause is pretty high. Yeah, it's very high. To guarantee what I would say is a very high bar to guarantee that you would find reasonable cause to abate penalties. When you're filing a reasonable cause, it's usually for many years of other things you got caught up in. We sometimes have fun imagining the scenario that the IRS would say okay to. They cannot deny you reasonable cause belief, but they kind of will. On...
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